Visa tops profit estimates on higher consumer spending

Reuters Staff

2 Min Read

(Reuters) - Visa Inc (V.N), the world’s largest payments network, topped analysts’ estimates for third-quarter profit on Wednesday, as an expanding U.S. economy encouraged more people to spend using their credit and debit cards.

FILE PHOTO: Visa credit cards are seen in this picture illustration taken June 9, 2016. REUTERS/Maxim Zmeyev/IllustrationREUTERS/File Photo

Total payments volume rose 11 percent to $2.10 trillion, on a constant dollar basis, with the United States - its largest market - comprising about 44 percent of the total.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose in the most recent quarter in an economy that is expected to have grown at its fastest annualized rate in three years.

Cross-border volumes - the value of transactions made outside the United States - saw a 11 percent growth in the quarter also on a constant currency basis.